This article first appeared on GuruFocus .
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Net Revenue:BRL 3.8 billion in 3Q25; BRL 10.2 billion year-to-date, up 7.6%.
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EBITDA:BRL 1.5 billion in 3Q25, up 18.5% year-on-year; 21% increase over the nine-month period.
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EBIT:BRL 854 million in 3Q25, up 22.6% year-on-year.
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Net Income:BRL 170 million for the quarter; BRL 216 million year-to-date, up 27.6% versus 2024.
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Return on Invested Capital (ROIC):14.4% in 3Q25, a 2% point increase from the previous year.
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Rental Revenue Growth:15.3% in the quarter; 19.3% over the nine-month period.
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EBITDA Margin:68.8% in Rent a Car; 76.5% in GTF.
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Fleet Growth:Operating fleet increased by 4% year-on-year.
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Used Cars Sold:24,500 cars in the quarter; 75,200 year-to-date.
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Average Daily Rate:159 BRLs in 3Q25, a 12% increase year-on-year.
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Leverage:Net debt over EBITDA at 2.7 times in 3Q25, down 0.4 times year-on-year.
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Cash Position:Exceeded BRL 3.3 billion, covering over 100% of gross debt payments until the end of 2026.
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Release Date: November 11, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Movida Participacoes SA ( BSP:MOVI3 ) reported record highs in net revenue, EBITDA, and EBIT for the third quarter of 2025, showcasing strong operational improvements.
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The company achieved a significant increase in rental revenue, growing 15% year-on-year, despite only a 4% increase in the operating fleet.
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Movida's strategic initiatives, such as the expansion of digital experiences and the launch of Movida Pit Stop, have enhanced customer convenience and operational efficiency.
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The company maintained strong pricing levels in its fleet sourcing segment, with new contracts delivering higher average monthly yields compared to the previous year.
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Movida's loyalty program has attracted over 2.5 million registered customers, aiming to increase rental frequency and strengthen customer relationships.
Negative Points
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There was a slight increase in depreciation per car due to higher acquisition costs, which could impact future profitability if not managed carefully.
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Despite strong operational performance, the company's leverage guidance for the fourth quarter does not imply a major reduction in leverage, indicating potential financial constraints.
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The average selling price of used cars increased, but this was partly due to a shift in sales mix, which may not be sustainable long-term.
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Movida's occupancy rate for rental cars was at 72%, which is below the optimal level, suggesting room for improvement in fleet utilization.
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The company faces challenges in migrating more cars from wholesale to retail sales, which could limit potential profitability gains from retail channels.
Q & A Highlights
Q: Can you explain the slight increase in depreciation for rental cars and GTF this quarter? Is this a trend we should expect to continue? A: The increase in depreciation is linked to the higher acquisition costs of cars due to inflation over the past year. While the nominal value of depreciation is higher, the annual depreciation rate remains stable. We don't foresee additional pressure on depreciation rates, which are stable at 8-9% for rental cars and 9-10% for GTF.
Q: Your leverage guidance for the next quarter doesn't suggest significant deleveraging despite strong operations. Can you elaborate on this? A: We have made significant progress in deleveraging, reducing from 3.1 times in 3Q24 to 2.7 times. The fourth quarter is typically our best, and while we expect some reduction in leverage, we also plan to grow our fleet slightly. This should result in a leverage ratio between 2.6 and 2.8 times, which is still a positive outcome.
Q: Could you provide more details on the guidance for net income in the fourth quarter? Are there any specific factors contributing to this? A: The guidance reflects strong performance in October and November, with rental car volumes and prices 10-15% higher than last year. GTF continues to grow steadily. We are not accelerating car purchases but are aligning with our annual plan, which supports the positive outlook for the fourth quarter.
Q: What factors are driving the increase in average sales prices for used cars, and what do you expect for the fourth quarter? A: The increase is due to higher purchase prices over the past year and a shift in the sales mix towards more retail sales, which command higher prices. We expect the average sales price in the fourth quarter to remain close to the third quarter, with a stable mix of 60% hatchbacks.
Q: How do you plan to increase the share of retail sales in your used car segment, and why wasn't this done earlier? A: We are expanding retail channels by targeting a segment of the market interested in higher mileage cars, which were previously sold wholesale. This involves opening new stores in car shopping centers. The stable operation of our company now allows us to explore these opportunities for higher profitability.
Q: What is your strategy for managing fleet occupancy and pricing in the rental car segment? A: We aim to increase occupancy rates from 72% to 77-78% by optimizing fleet use and maintaining price adjustments in line with new car costs. This dual approach will enhance profitability while ensuring business sustainability.
Q: With the current economic conditions, do you plan to grow your fleet in 2026? A: Given the high interest rates, we plan to focus on deleveraging rather than fleet expansion. We will continue to direct cash generation towards reducing debt, which we believe is the best strategy for value creation at this time.
Q: Can you discuss your plans for managing the balance sheet and debt maturities in the coming quarters? A: We have successfully extended maturities into 2027 and have a pipeline to cover 2026 obligations. The market remains favorable for raising funds, and we plan to clear all 2026 maturities by year-end, allowing us to focus on 2027.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
